Plymouth Retirement Board
Friday, September 24, 2010 8:30 a.m.
Retirement Board Conference Room
Chairman Thomas Kelley called the meeting to order at 8:43 a.m. in the conference room of the Plymouth Retirement Office. Present Board members were Thomas Kelley, Lynne Barrett and David Malaguti. Richard Manfredi arrived late at 9:05 a.m. Shawn Duhamel was absent. Also present were Debra Sullivan, Wendy Cherry, Anthony Tranghese of Fiduciary Investments and Atty. Michael Sacco. In the audience was Warren Ottino, Daley Webber & Marie Guidetti.
Section I: Regular Business – Regular Meeting
Minutes:
Minutes dated August 24, 2010: Executive Session
Minutes dated August 24, 2010: Regular Board Meeting
Motion to approve minutes made by Ms. Barrett; seconded by Mr. Kelley. Unanimously voted.
(Note: For purposes of voting, Mr. Kelley stepped down as Chairman momentarily to cast the second vote, as Mr. Malaguti could not vote on minutes to a meeting he did not attend. Mr. Manfredi was not in attendance at this time to second the motion).
Warrants:
Warrant #7, dated July 31, 2010: $3,544,073.61 (Final)
Warrant #8, dated August 31, 2010: $4,401,659.64 (Partial)
Warrant #9, dated September 30, 2010: $8,579,201.26 (Partial)
Warrant #10, dated October 31, 2010: $ 3,545.76 (Partial)
Motion to approve warrants made by Mr. Malaguti; seconded by Ms. Barrett. Unanimously voted.
Public Comment:
Dale Webber, Insurance Advisory Committee Chairman spoke to the Board regarding the Town's request for aide in setting up an OPEB health care fund. Mr. Webber handed out a packet that was distributed at the Board of Selectmen's meeting on August 17, 2010. Mr. Webber told the Board that he believes that the Town's health care fund would be better managed by utilizing the Retirement Board's investment manager, Wellington Management, to set up and invest the health care fund. Currently, the IAC is working on passing a Home Rule Petition that would enable the Town to set up this fund. The City of Wellesley has already successfully passed this Home Rule Petition, and the Town of Plymouth will use the same template with its own location in the title. He went on to say that this type of fund will if started now, would help to reduce and aide the health care liability in the future. Mr. Webber also told the Board that he has spoken to House Senate President Therese Murray, who has assured him that since the City of Wellesley has already had this Home Rule Petition approved passed and approved by the Legislature, that there would be no delay in approving the Town of Plymouth's petition, and therefore, it would be most likely completely by May 2011.
Town of Plymouth Other Post Employment Benefits Issue
(Continued from Public Comment)
Chairman Kelley told the Board that he has spoken to the Town of Selectmen and Finance Committee Chairman William Driscoll regarding the possible utilization of the Retirement Board's investment manager, Wellington Management. Chairman Kelley said that he had been asked by Selectman Hallisey to go back and talk more about aiding the Town to set up a Health Trust Fund. Because the Plymouth Retirement System currently uses Wellington for several investment, they have agreed to work with the Town of Plymouth and open an account with a minimum investment of $1 million, instead of their normal requirement of $5 million. This action would require a vote from the Board to proceed further.
Mr. Tranghese said that Wellington is a high quality manager with relatively inexpensive fees, and in his opinion, the Town would benefit from taking advantage of the OPEB funding opportunity.
Ms. Barrett told the Board that if the Board votes to aide the Town in facilitating this investment with Wellington, the Town will want something in writing from Wellington outlining the required minimum investment and any other requirements or details after the fund is established. The Town would also want written confirmation that this investment would remain on the Town's balance sheet, not the Retirement System's.
Atty. Sacco told the Board that there is no legal burden placed on the Board in facilitating this investment between the Town and Wellington Management, only the usual fiduciary responsibility.
Motion made by Mr. Malaguti to approve the Boards' participation in assisting the Town in their efforts to establish an OPEB Health Trust Fund; seconded by Mr. Manfredi. Unanimously voted.
A second motion was made by Mr. Malaguti to put together a packet of information for Town of Plymouth Board of Selectmen with details of the Wellington fund and requirements; seconded by Ms. Barrett. Unanimously voted.
Section II: Solicitation & Correspondence:
Budget
Board was given a proposed draft Budget for 2011 for the Board to review and discuss at the next meeting.
Mrs. Barrett told the Board that she would like to set up a 3 member sub-committee to review and implement a staff salary schedule for the pending budget.
Motion to elect herself, Ms. Sullivan & Chairman Kelley to the sub-committee made by Ms. Barrett; motion seconded by Mr. Malaguti. Unanimously voted.
Financial Audit Contract
Powers and Sullivan proposed letter of agreement to renew contract for Annual Audits 2010-2012. Mrs. Sullivan told the Board that Powers & Sullivan have not increased their fee for the upcoming audits.
Motion to approve renewal of contract with Powers & Sullivan for annual audits for 2010 – 2012, made by Ms. Barrett; seconded by Mr. Malaguti. Unanimously voted.
Investment Correspondence:
Wellington Management: Account & Performance Summary as of August 31, 2010
Wellington Trust Company: Update to Statement of Characteristics
Eaton Vance: Investment Performance as of August 31, 2010
State Street Global Advisors: Performance Report as of August 31, 2010
Conferences:
MACRS Fall 2010 Conference, October 17 – 20, 2010, Springfield MA
Motion made by Mr. Malaguti to approve conference attendance; seconded by Ms. Barrett. Unanimously voted.
Legal:
Discussion on Angela Dunn v. Plymouth Retirement Board appeals case
Section III: Executive Session:
Pursuant to Chapter 30A, Section 21B, Board to enter into executive session to discuss pending litigation. Board will also hold an Accidental Disability evidentiary hearing for Jeffrey McGinnis, Plymouth Airport employee.
Roll call vote to enter into executive session at 9:20 a.m.:
Mr. Kelley yes
Mr. Malaguti yes
Mr. Manfredi yes
Ms. Barrett yes
Board will re-enter into the regular meeting following executive session.
Motion made to adjourn executive session and re-enter into the regular meeting at 9:50 a.m. by
roll-call vote:
Mr. Kelley yes
Mr. Manfredi yes
Ms. Barrett yes
Mr. Malaguti yes
Section IV: Membership:
New Hires:
Town:
9% McDonnell, Thomas P., Group 1, DPW Truck Driver
Perm. Full-time, $660.00 weekly
Start Date: 8/16/10
School:
9% Cavilla, Richard, Group 1, HVAC Technician
Perm. Full-time, $2,040.22 bi-weekly
Start Date: 8/16/2010
9% Sears, Theresa, Group 1, Benefits Coordinator
Perm. Full-time, $2,028.80 bi-weekly
Start Date: 8/30/2010
Motion made to approve new hires made by Mr. Malaguti; seconded by Ms. Barrett. Unanimously voted.
Refunds:
Town:
Kennedy, Gail (Beneficiary of deceased member Kristin Andrews, COA)
17 years, 10 months service
Total distribution, including FWT: $73,494.57
School:
Belanger, Vicki, Group 1, Special Needs Aide
5 years, 3 months service (4/27/05 – 8/20/10)
Total distribution, including FWT: $3,077.85
Motion made by Mr. Malaguti to approve refunds; seconded by Ms. Barrett. Unanimously voted.
Transfers:
Town:
Felix, Linda M., Group1, COA- Program and Activities Coordinator 3 years, 1 month creditable service (7/16/2007-8/17/10)
Transferring to: Plymouth County Retirement Board
Motion made by Mr. Malaguti to approve transfer; seconded by Ms. Barrett. Unanimously voted.
Section V: Board Policy:
Regular Compensation:
Police Chief Botieri's has inquired whether or not the stipend paid for special care of police dogs is subject to retirement deductions. In addition to this question, Board to discuss the adoption of a policy regarding how regular compensation will be determined under Chapter 32?
Atty. Sacco told the Board that they should adopt a simple definition/policy of "regular compensation", defining what makes up an employee's base pay. Everything outside of the base pay would not be subject to retirement deductions. He told the Board that a policy does not require approval from PERAC, as does a regulation. Mrs. Sullivan will draft a policy for the Board to review.
Motion to draft a policy on regular compensation made by Mr. Manfredi; seconded by Mr. Malaguti. Unanimously voted.
Section VI: Investment Review:
Eaton Vance Annual Review:
Katharine Kasper was present from Eaton Vance for their annual review to discuss investment performance for period ended August 31, 2010.
Eaton Vance was founded in 1924, and consists of a team of 150 investment professionals, with offices in Boston, New York & London. As of June 30, 2010, total assets under management were $165.4 billion.
The Board invested $3.9 million on November 3, 2008, and made an additional investment of $800,000 in July 2009. At August 31, 2010, the market value of Plymouth Retirement System's Large Cap Value Fund is $4.9 million. As of August 31, 2010, the fund under-performed the Russell 1000 Value Index benchmark with -6.80% vs. -3.03. During 2009 the fund also under-performed with 17.22% vs. 19.69%.
Mrs. Kasper told the Board that the oil spill in the gulf had a major negative impact on the fund, despite the fact that Eaton Vance did not own any shares of British Petroleum. She stated that September 2010 has been a good month and expects the fund to recover somewhat during the 4th quarter of 2010.
State Street Global Advisors Annual Review:
Gregory Balewicz was present from State Street Global Advisors for their annual review and to discuss investment performance for period ended August 31, 2010. He told the Board that there has been no change to the firm or staff since his last visit.
As of August 31, 2010, the total market value of assets with SSGA was $4,807,520, of which $2,221 is invested in the Quality Trust Liquidating Trust 1, and $4,805,299 is invested in the S&P 500 Flagship Non-Lending Fund. As of August 8, 2010, the S&P 500 Flagship Securities-Lending Fund balance was zero.
For period ended August 31, 2010, the portfolio was in-line with the S&P 500 Index benchmark with -4.50% vs. -4.51%. Year-to-date the portfolio slightly out-performed the benchmark with
-4.57% vs. -4.62%. Mr. Balewicz told the Board that, so far, September has been a great month for the portfolio.
Total Fund:
As of August 31, 2010, the fund was valued at $95.5 million. Mr. Tranghese told the Board that September has already been a positive month, and he expects the portfolio to be up by approximately 2% - 3% by the end of fourth quarter, 2010.
Mr. Tranghese gave the Board copies of a draft Investment Policy Statement to review and discuss at their October Board meeting. The main reason for the updated policy was to include the new type of asset allocation funds with BlackRock & Wellington Management.
Section VII: Adjournment:
Motion to adjourn meeting at 11:00 a.m. made by Mr. Manfredi; seconded by Mr. Malaguti. Unanimously voted.
Next Meeting: Friday, October 22, 2010, 8:30 a.m.
The Town of Plymouth Retirement Board unanimously voted to approve these minutes at their meeting on Friday, October 22, 2010. Original, signed minutes are available at the Retirement Office, 10 Cordage Park Circle, Suite 240, Plymouth, MA.
| < Prev | Next > |
|---|
